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Question:

A broker may never ____

A None of these.
explanation

All of those are legal actions for a broker.

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Related Questions

Agency relationships may not be created by ____

voluntary offer by the agent.

Agency requires agreement of the parties. A volunteer action by the agent without the corresponding consent of the principal is insufficient.

A buyer of a property had a real estate agent write up an offer to purchase a home. The offer was contingent upon the sale of their existing home. The seller made a counter-offer accepting the buyer’s offer, but reserved the right to continue marketing the home, seeking higher offers and granting the buyer a right of first refusal to remove their contingency if a better offer came in. The buyer accepted the seller’s counteroffer and immediately listed their existing home for sale. Shortly thereafter, the seller notified the buyer’s agent that a better offer had been received without contingencies. What should the agent advise the buyer to do?

Advise the buyer of the advantages and disadvantages of removing the contingency and buying the home before the sale of their existing home.

Any time terms must be changed, as with a counteroffer, the principal must make the decision. It is the agent’s responsibility to give the client all the information and allow them to make their own decision.

Which of the following is an example of a trust fund violation?

Holding a deposit check uncashed at your own discretion.

This question concerns the person that has authority to act regarding deposits. Only the principals can decide the proper handling of the check. Answer “Failing to disclose a material…”, while a violation of disclosure law, is not a trust fund and accounting violation.

Any broker negotiating a transaction as an agent for either party has a(n) ____ to disclose title conditions affecting ownership or use of the property to both parties, not just their client.

general duty

A fiduciary duty is owed only to a broker’s client. However, the broker also owes a general duty to all parties to disclose any material facts about a property, such as title conditions affecting the property’s use.

A real estate broker acts from a position of trust for the seller or buyer. This is described legally as a (n) ____

fiduciary relationship.

The relationship is described as fiduciary. None of the other answer selections describe a relationship of loyalty and trust.

Before a broker may solicit for an advance fee, the advance fee paperwork must be submitted to the ____for approval at least 10 days prior to use.

Department of Real Estate (DRE).

A broker needs to obtain approval from Department of Real Estate (DRE) prior to soliciting for an advance fee. The other government entities provided in the answer selections have no jurisdiction over the documents.

Which of the following is an attorney-in-fact?

A legally competent person who has been given a power of attorney to act on behalf of another.

Note that the question contains the word ‘attorney’ yet the correct answer demonstrates any competent person in possession of a power-of-attorney is qualified. Thus, answer choice “A legally competent person who has been given a power of attorney to act on behalf of another” is the best answer.